Rite Aid Corp. (RAD) recently announced its financial results for the second quarter. The company surprised investors by posting a loss, though its quarterly revenue beat expectations. It also affirmed its sales forecast for the full year.
The drugstore chain reported a net loss of $359.1 million, or 34 cents per share for the three-month period ended Sept. 1, as compared to earnings of $170.7 million, or 16 cents per share in the same period last year. On an adjusted basis, it posted a loss of 1 cent per share, versus analysts’ average estimate of breakeven.
Revenue for the quarter came in at $5.42 billion, up from $5.35 billion in the comparable period one year ago. Analysts surveyed by FactSet were looking for revenue of $5.36 billion.
Retail pharmacy same-store sales jumped 1 percent in the quarter, while pharmacy revenue surged 1.6 percent to make up for a decline of 0.1 percent in front-end revenue.
Looking forward, Rite Aid now expects an adjusted loss of 3 cents per share to profit of 1 cent per share for 2019, as compared to its earlier projection of a loss of 4 cents per share to breakeven.
The company also affirmed its revenue forecast in the range of $21.7 billion to $22.1 billion for the full year.
Chief Executive Officer, John Standley said in a statement that the company has been making efforts to capitalize on key opportunities to expand its business. These efforts helped Rite Aid to drive noticeable improvement in front-end and pharmacy comparable store sales, he added.
Standley also said that the company has full confidence in its strategy and team for building significant momentum for future as it continues to work to fulfill the emerging needs of its clients and create value for its stakeholders.